Govt has no unbridled power to take over private resources: Supreme Court
05 Nov 2024
The Supreme Court has overturned a 1978 verdict and ruled that the power of the central government under Article 39(b) to take over ownership and control of private property for public purposes is limited.
The ruling clips the government’s unlimited power to take control of private property granted by the 1978 verdict by Justice V R Krishna Iyer, which held that the government can take over any private property for redistribution.
A nine-judge bench of the Supreme Court ruled with an 8:1 majority that all private properties cannot be part of the 'material resources of the community’ to be equitably distributed by the central government as per the Directive Principles of State Policy under Article 39(b) of the Constitution.
While some private properties can be brought under Article 39(b), provided they are material and belong to the community, not all private properties can be so considered, the bench ruled.
The 9-judge Constitution bench comprised Chief Justice of India DY Chandrachud and Justices Hrishikesh Roy, BV Nagarathna, Sudhanshu Dhulia, JB Pardiwala, Manoj Misra, Rajesh Bindal, Satish Chandra Sharma and Augustine George Masih.
While Justice BV Nagarath partially concurred with the majority opinion, Justice Dhulia dissented.
Article 39(b) of the Constitution states that the State shall direct policy to ensure "ownership and control of the material resources of the community are so distributed as best to subserve the common good".
But, the majority judgement authored by Chief Justice DY Chandrachud held, "All private properties are not material resources. Hence, it cannot be taken over by states."
The court held that the 1978 verdict was based on the socialist ideology of Karl Marx. India, nor its constitution is based on any single economic dogma and is broader in its approach.
The ruling, which sets limits to the government's ability to usurp private resources, was pronounced on the last working week of CJI Chandrachud, whose tenure ends on 9 November.